Feedback Stackelberg Solutions of Infinite-Horizon Stochastic Differential Games

Alain Bensoussan, Shaokuan Chen, Suresh P. Sethi

    Research output: Chapters, Conference Papers, Creative and Literary WorksRGC 12 - Chapter in an edited book (Author)peer-review

    30 Citations (Scopus)

    Abstract

    We present a sufficient condition for a feedback Stackelberg equilibrium of a stochastic differential game on an infinite horizon. This condition gives rise to a system of elliptic partial differential equations involving a static Stackelberg game at the level of Hamiltonian. As an example, we consider a linear quadratic problem, obtain the corresponding algebraic Riccati equation, and provide its solution in the scalar case.
    Original languageEnglish
    Title of host publicationModels and Methods in Economics and Management Science
    Subtitle of host publicationEssays in Honor of Charles S. Tapiero
    EditorsFouad El Ouardighi, Konstantin Kogan
    PublisherSpringer Verlag
    Pages3-15
    ISBN (Electronic)9783319006697
    ISBN (Print)9783319006680
    DOIs
    Publication statusPublished - 2014

    Publication series

    NameInternational Series in Operations Research and Management Science
    Volume198
    ISSN (Print)0884-8289

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